Will Tesla Stock Ever Be This Cheap Again? Trump’s Commerce Secretary Doesn’t Think So.

Tesla (TSLA) has had a bumpy start to 2025 as the electric vehicle pioneer grapples with softening demand, increasing competition, and scrutiny over its pricing model. 

Despite maintaining its dominance in autonomous driving, Tesla’s global delivery growth has stalled while competitors in China, headed by BYD (BYDDY), have gained market share. However, a surprise public vote of confidence by Commerce Secretary Howard Lutnick — in which he claimed Tesla stock “will never be this cheap again” — has helped to drive renewed interest.

Tesla shares jumped nearly 5% on Lutnick’s remarks, followed by a pre-market bump the next day. President Donald Trump has also spoken positively about the company, and purchased a Tesla vehicle at the White House. 

Can this political enthusiasm override fundamental concerns? A high valuation, slowing earnings momentum, and divided analyst opinions have investors wondering whether this rebound is the start of a longer-term recovery — or just a temporary reprieve.

About Tesla Stock

Tesla (TSLA) is a global EV, autonomous technology, and clean energy leader headquartered in Austin, Texas, with an almost $800 billion market capitalization. The company has revolutionized the contemporary auto sector, pairing automobiles with AI-powered software and over-the-air upgrades, while expanding into energy storage and grid-scale battery systems.

Tesla shares have had a poor run in 2025, falling nearly 35% year-to-date. For context, the S&P 500 Index ($SPX) is down just over 2%. Over the past year, TSLA has still been up around 58%, but with lots of volatility — having traded in a range of $138.80 to $488.54. The stock recently bounced back to $248.71 after a run of losses, and and a nearly 10% morning rally on Monday, March 24 suggests more gains could be in store.

Tesla’s valuation remains elevated. Its trailing price-earnings multiple is 115.25x, and forward price-earnings multiple of 92.56x is well above the auto industry average. Its 7.78x price-sales ratio and 60.99x price-cash flow multiple reflect a persistent premium that will be harder to maintain in a world of slower growth.

Tesla does not pay dividends and invests cash flow in research and development, expanding production capacity.

Tesla to Roll Out FSD in China

Tesla has started rolling out its Full Self-Driving (FSD) software in China in hopes of unlocking new growth opportunities through subscription services. The FSD update achieves parity with the U.S. feature set, enabling additional driver-assist features and autonomous features. The release is seen as a major test of Tesla’s software strategy outside North America.

Regulatory hurdles remain a primary stumbling block. China’s government has already slowed Tesla's full FSD launch over safety and data security concerns. With FSD now launching, government attitude and potential restrictions will play an important role in determining rates of adoption.

Meanwhile, Chinese rival BYD has launched its own driver-assist features on dozens of models, contributing to competition. There are also rumors that Tesla may license its FSD stack to third-party Chinese carmakers — a potential source of revenue that could reduce reliance on car sales and improve margins.

FSD’s traction in China can provide Tesla with a high-margin growth catalyst, especially with U.S. EV demand decelerating and price cuts on cars weighing on profitability.

What Do Analysts Expect of Tesla Stock?

Tesla has a “Hold” consensus rating among analysts, even though sentiment is improving slightly. The average rating, based on 40 analysts, has increased from 3.18 to 3.33 over the course of the past three months. The breakdown is now 15 “Strong Buy” recommendations, three “Moderate Buys,” 12 “Holds,” and 10 “Strong Sells.” 

The increase in “Strong Buy” calls reflects that some on Wall Street see upside potential attached to Tesla’s software development and political tailwinds. That said, the presence of 10 “Strong Sell” calls reflects persistent concerns over valuation, demand saturation, and competitive danger — particularly from China.